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The UAE VAT registration is now open

Another step closer to VAT implementation

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has opened registration for Value Added Tax (VAT) on its portal.

Who should register for VAT?

As previously communicated there will be a mandatory registration requirement for UAE businesses with a turnover of AED 375,000 or more in any 12 month period. Businesses who will exceed this threshold initially must register for VAT in the fourth quarter of 2017, before the tax becomes effective from 1 January 2018.

In addition, businesses that are not currently required to register, can elect to register voluntarily where the annual turnover, or the annual expenses subject to VAT, exceed AED 187,500. It will be important for such businesses to assess and decide whether it will be better for them to register or not, based on their specific circumstances.

Businesses without a UAE establishment are also required to register for VAT if they are obliged to charge and collect UAE VAT on any value of local sales. Businesses unsure about their obligation or ability to register for VAT should seek further advice.

Business friendly options: Grouping

Many business groups will be interested and will have the ability to register for VAT under a single group registration. This will generally be of interest to those operating through a number of subsidiaries, particularly if they use a common accounting platform, although it may not necessarily be suitable for all.

How can you register your business?

Businesses can register through the FTA registration portal on the following link.

Some of the documents that need to be uploaded are:

  • Certificate of incorporation (if applicable)
  • Articles of Association/ Partnership Agreement (if applicable)
  • Contact information
  • Bank Account details
  • Description of business activities
  • Financial Statements
  • Expected values of imports and exports/ Customs details (if applicable)
  • Authorized Signatory documents
  • Passport and Emirates ID of manager, owner and senior management
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